Sangla ATM Agreement: What You Need to Know
A sangla ATM agreement is a type of loan agreement wherein a borrower uses their Automated Teller Machine (ATM) card as collateral. This type of loan is also known as an ATM loan or debit card loan.
How does it work?
In a sangla ATM agreement, the borrower pledges their ATM card as collateral for the loan. The lender then holds on to the ATM card and returns it to the borrower once the loan has been repaid.
The loan amount is typically a percentage of the ATM card`s credit limit. For example, if the ATM card has a credit limit of Php 20,000, the loan amount can be Php 10,000.
The loan term is usually short, ranging from a few days to a few weeks. The interest rates for this type of loan can be high due to its short-term nature and the lack of traditional collateral.
Who can apply for a sangla ATM loan?
Anyone who has an ATM card with a credit limit can apply for a sangla ATM loan. This type of loan is popular among individuals who need quick cash but do not have traditional collateral such as a car or property.
What are the advantages of a sangla ATM loan?
One of the main advantages of a sangla ATM loan is its accessibility. As long as the borrower has an ATM card, they can apply for a loan. The loan application process is also usually quick and easy.
Another advantage is the short loan term. Borrowers can quickly repay the loan and avoid long-term debt.
What are the disadvantages of a sangla ATM loan?
The main disadvantage is the high interest rates. Borrowers should carefully consider the interest rates and fees before applying for a sangla ATM loan. The short loan term also means that borrowers need to have a stable source of income to ensure timely repayment.
In conclusion, a sangla ATM agreement can provide quick cash for those in need but should be approached with caution due to high interest rates and short loan terms. Borrowers should carefully consider their financial situation and explore other loan options before applying for this type of loan.